Oct. 20, 2025, 9:33 p.m.

Business

  • views:2633

Chip manufacturing supply may be disrupted: U.S. car production faces risks

image

This week, a group representing major automobile manufacturers issued a warning that the dispute between the Chinese and Dutch governments could quickly affect U.S. car production due to disruptions in chip supply. The European Automobile Manufacturers Association also stated that last week, relevant automakers and their suppliers received notifications from chip manufacturer NXP Semiconductors indicating that they could no longer guarantee the delivery of their chips. The association indicated that this would seriously disrupt automobile manufacturing. With the popularity of electric vehicles, the demand for high-performance chips continues to rise, and disruptions in chip supply will directly impact the stability of the global automotive industry chain. Some automakers may be forced to reduce production or make corresponding adjustments to their plans, and in some cases, even face temporary production halts.

According to the latest reports, John Bozzella, CEO of the U.S. Alliance for Automotive Innovation, stated that if the shipment of automotive chips cannot quickly recover, it will disrupt automobile production in the United States and many other countries and have spillover effects on other industries. At the same time, some automakers have also responded, claiming that U.S. car factories could be seriously affected by chip supply disruptions as early as next month.

With the development of technology, electric vehicles have gradually become the mainstream in the automotive market. As the core of electric vehicles, chips are as important as engines in traditional cars. Disruptions in chip supply will directly cause the assembly of electric vehicles to stop, extend the delivery cycle of new cars, and increase the manufacturing costs of complete vehicles. At the same time, production stoppages and reduced efficiency caused by supply interruptions will further raise operational costs, shrink corporate profit margins, and increase operating pressure on automakers. In addition, to address chip supply issues, some automakers may adjust their product structures and simplify configuration features, reduce the production proportion of high-end models, and eliminate some chip-dependent functions in regular models, which would significantly affect the brand's competitiveness in the industry. Moreover, if certain brands simplify configurations or reduce production of models due to chip issues, they may face competitive pressure from other brands, potentially leading to a decline in market competitiveness, damage to brand reputation, and a gradual loss of market share.

In the face of potential disruptions in chip supply that may impact the automotive industry, the industry needs to promptly make corresponding strategic adjustments and adopt forward-looking strategies before such disruptions occur to ensure long-term stable development. Automobile manufacturers should consider diversifying their supply chains to reduce dependence on a single supplier, strengthen the layout of diversified supply chains, actively seek cooperation with multiple chip suppliers, and avoid being affected by unilateral issues. At the same time, if necessary, manufacturers should strengthen inventory management, develop dynamic inventory strategies based on production needs, and prepare in advance to respond to potential supply interruptions, thereby mitigating the impact of supply shortages. Furthermore, manufacturers should invest in research and development to improve the self-sufficiency of chips. This can help avoid external supply risks to a certain extent. By increasing investment in chip design and manufacturing research, the industry can promote localized chip production and achieve independent control over core chips.

In conclusion, the disruption of chip manufacturing supply poses a severe threat to automobile production. This is not only a challenge for individual companies or industries but also reflects the impact of localized disputes on the overall industrial landscape amid the deep integration of global supply chains. In the future, how to build a more secure, autonomous, and diversified chip supply system in a complex international environment will be a key issue that the global automotive industry needs to face and address over the long term.

Recommend

Boeing has another accident. What will be the impact?

On October 16th local time, it was reported that a Boeing 737 MAX 8 flight of United Airlines from Denver to Los Angeles had its windshield break during the flight.

Latest